Investors Challenge BSEC: Acme pesticides placement share investigation

Staff Reporter :

The Bangladesh Securities and Exchange Commission (BSEC) is facing pushback following allegations of irregularities in the placement share issue of Acme Pesticides Limited, a company listed on the country’s capital market.
The regulator had planned to forward its investigation report to the Anti-Corruption Commission (ACC) for further action.
However, one individual and three institutional investors have raised objections, requesting the chance to present their side before any report is sent.
The objections were formally submitted to BSEC Chairman Khandaker Rashed Maqsood on 26 September, with particular reference to Mahmuda Shirin, Joint Director of the Enforcement Department.
The letter was sent on behalf of individual investor Ruhul Azad by three institutional investors: Bengal Asset Holdings Limited, Chittagong Plastic and Fisheries Limited, and Heritage Capital Management Limited.

Sources said, indicate that the matter stems from the decision taken at BSEC’s 973rd Commission meeting, which resolved to forward a report to the ACC regarding four investors, six other related individuals, and 11 additional entities, including Matiur Rahman of the so-called “goat case.” The alleged violation involved placement shares being issued in their names without payment.
The four investors, however, assert that they purchased the shares at amounts exceeding the stipulated price.
They contend that BSEC made its decision without giving them an opportunity to explain their position. In their letter, they described the commission’s action as unilateral and requested that BSEC formally seek their explanation to clarify the matter.
They also requested copies of the press release from the 973rd Commission meeting on 17 September and the full BSEC investigation report.
According to details provided by the investors, Acme Pesticides issued 11,34,140 shares to Bengal Asset Holdings, 6,030,581 shares to Chittagong Pesticides and Fisheries, 4,179,608 shares to Heritage Capital Management, and 50,000 shares to Ruhul Azad. In total, 1,13,94,329 shares—including bonus shares—were allotted to the four investors.
Ruhul Azad’s shares were purchased through Bengal Asset Holdings, while the company’s managing director and chief financial officer reportedly received Tk 140 million from the three institutional investors via cash and bank transactions at different times.
Acme Pesticides’ CFO Salim Reza defended the company, stating, “The commission has investigated various issues against our organization. We have provided explanations, but the placement share issue without money has been misrepresented. We hope the matter will be resolved soon.”
BSEC Director and spokesperson Abul Kalam said the investigation found evidence that some individuals and institutions had received placement shares without payment, including presenting fake bank documents or paying partially.
He added that while the ACC will investigate, those who have fully paid will have the opportunity to clarify their cases.
The controversy underscores growing tensions between regulators and investors over transparency, due process, and accountability in Bangladesh’s capital market.